Volume 2 - ElectricCanadian.com

124 HISTORY OF THE BANKwas 61,000,000 bushels, as against 32,000,000 bushels in1894. Another year of severe depression followed in1896, and the financial markets, both at home and in theUnited States, were much upset by President Cleveland'sbellicose message to Great Britain regarding Venezuela. Lowprices for agricultural products persisted in1897, and liquidationproceeded in various parts of North America. Moneywas very cheap and the Dominion Government, recognizing thefact, at last reduced its deposit rate to three per cent., the samerate as the chartered banks were paying. However, the longperiod of depression was nearing its end; in 1898 businessbegan to show signs of improvement. The Dominion wasentering on a new era of railway building. Wheat priceswere high, reaching $1.91 per bushel for May wheat in NewYork on May 10 the result of an attempt to corner thewheat market.In none of the four years 1895 to 1898 did the profits madeby The Canadian Bank of Commerce reach $500,000.Theywere only a little more than sufficient to cover the dividend ofseven per cent., which called for $420,000 annually. Thepolicy of adding to the Rest had to be suspended. In fact, in1896, it was necessary to take $200,000 from that fund, thusreducing it to $1,000,000, for the purpose of establishing aContingent Fund of $233,560 as a provision for doubtful debts.During the eleven years which followed 1887 the bank'sresources grew very slowly. Its total assets had risen from$19,574,094 on June 30, 1887, to $23,038,441 in 1889, and to$28,912,387 in 1893, and they remained around that level forfive years, or until 1898. The rapid progress of the bank maybe said, therefore, to date from 1898, for in that year therewas a gain in assets of nearly $5,000,000, bringing the total to$34,256,103. From that time on the figures rose rapidly yearby year, the $100,000,000 mark being passed in 1906.In September, 1895, the directors sent Mr. ArchibaldKains, of the New York agency, to New Orleans for thewinter for the purpose of purchasing foreign bills of exchange